A report on the British Self Build Industry:
“Past, Present and Future”.
From: Barry Sutcliffe (MD – Building & DIY.com )*.
1) Introduction (P1)
2) About the author (p2)
3) The Self Build industry – past. (P2)
4) The Self Build Industry – Present. (P3)
5) The Self Build industry – future. (P15)
6) Conclusion. (P19)
Introduction:
This report was written to bring to the attention of the “main actors” in the self build industry, the fact that things are not as they should be in 2010.
Self Build industry is not in something like its “potential rate” has risen for some time. growth in the past 20 years based on “supplements” on average by only 1.5% per year. despite the massive boom in the apartment market in the same period, and despite the very considerable benefits that self-building offer for the purchase of a property can be one of the “Volume house garden”. The offer “infrastructure” of the industry is up to much higher volume of business directed to overcome. The latent demand for the industry, “product” product is very high. The quality of the product, “the opposition” (the volume builders) has got poorer in the past 20 years. So, why the industry is not growing as it should? Why things are even worse when we look at how we are? who
And how can we solve the problem
About the author:
The author of this report has been in the UK Self Build Industry approximately 30 years. He has completed about 20 gigs build projects, either for yourself or as a project manager.
10 years ago he founded a “Bespoke Housing Development Company, design and construction of large, high-quality real estate in South Wales. He also has
renovated / renewed approximately 250 houses for various construction companies and councils, and has on many different projects in the Commercial Building and Civil Engineering Industries’ work (including factories, schools, hotels, hospitals, Retail, built Civils and infrastructure).
Around 1990, he was a “founder” and was on the original Executive Committee of The Association of Self Builders (ASB), where he covered the role of Regional Coordinator for the United Kingdom took, running regular meeting in the North-West, where he would like to present talks on various subjects, and give free advice and help for self-help construction companies from the region.
Self Build Industry -. Past
to understand the present, we need to start in the past.
Self Build industry was a significant sector of the construction industry, probably in the late sixties and early seventies.
It has always been people interested in and actually manage to build their own houses, but started the number of completions, “interesting levels, were taken at this time.
There was no real “form” for the industry and no real leadership. People are basically “had the idea” was to Self Build out how they do it, and got on with it.
The choice in the “Product and Supply” market has been nothing like it is today, but people made it, “one with” and create some very nice features (far better than can afford if they were buying from a developer, the National Housing), while the object of a considerable saving in the costs at the same time. – To use the old adage, “your third is free !”.
The biggest problem people had at the time was that they were very much” on their own “when she went off of it to a project plan.
The Association of Builder’s:
founded in 1990, was the Association of Self Builders (ASB), a voluntary organization whose core purpose was to investigate the growth of the self to promote industry and build some support for the people, “giving it a go” were to give!
The people who realized the Committee of the Association that there is very little “free and unbiased” assist in the time available for the thousands of people were now embarking on one of these major projects each year, and only made very little to make them stop big mistakes that could possibly endanger their projects. You
decided to try to help by forming the ASB and provides free and independent advice and other forms of assistance for anyone starting on a project.
The most important information at the time were Murray Armor book “Building Your Own Home”, and Bob Mathews book “Practical House Building”. There were also 2 year “Self Build shows” one in London and one in the control in Birmingham, which were generally very well tolerated by many thousands of people that this “self build” a pretty good idea was clearly to visit! monthly magazines were either started or were in very limited circulation. There was no Internet. It was not easy to access cellular networks. Phones that were available were the size and weight of a brick house and were very expensive. There were very few companies that have embraced the idea of self-help build and who built it in the heart of its business, and although there are a few specialist self build mortgages available, they were not marketed widely and were often found only after considerable research. Who started to build on a farm project at that time was pretty much on their own and would need a lot of work to do hard, do a lot of running around, gathering all the information available, all the people they needed, and go by the “large number” of processes necessary to be able to get a project up and running “. The ASB will help to improve the way the industry worked. – To create “lines of communication” between the self and the garden professional people, it needs to plan and complete their projects. – Would go To a place to get just some support and ideas, and to know that there were people there at the other end of the phone to help them, without necessarily anything they want in return
<. p> At that time we have the traffic of the ASB and said: At present there are about 13000-14000 Self Build completions per year. – The fact that there are significant advantages gained with the self-build, and that people should seriously think about going with a self “
Ok, that was about 20 years ago, how have things since then..?
changed
Self Build Industry -.! Present
Well, unfortunately things are not as they should be
The
If we take the level of qualifications in the early 90′s at (approximately) 13 500 per year, with figures of a few years before the recession of around 18,000 completions, we find that in about 16 years, only an increase in completions, 280 were each year
Wed, despite:
• The growth of the Internet and the “explosion” of information now available
• The fantastic improvement in the way we each other and to enterprises throughout. . Britain (and the world) can communicate over the air
• The exponential growth in the number of companies that “comprise” now self build as part of their core business. – From “architect” to “carpet suppliers “and the marketing of their products directly to the self build sector
• The enormous increase in the number of creditors and the ease of obtaining a series of self-build mortgage products, -. ever designed for different types of
people
Suit • The growth of ‘literature’ market with several regular publications, now widely available and provides current information and advice -. plus dozens of specialists, the books on this subject have been written and which is free and widely available at reasonable costs
.
• The increase in the number of trade fairs (large and small) throughout the country.
• The growth of the “Build Goals” and the launch of the Superb ” national self-determination Build Center in Swindon.
• The improved “Find Land” tools such as “Build Goals” and the various other Internet / sale of real estate sites, and the wider involvement of estate agents in building land under their itinerary.
• The generally improved road and rail networks, to travel to us to work on, and therefore necessary to purchase land in rural areas more than we consider may be able, would have 20 years ago may have. (These more rural land is often required with lower prices, it should be more “demand” than areas closer to the centers of population).
• The increase in the number of “specialist” and “tailor-made “Products for this market only, far superior to the Builder’s to a product brand” Individual “to produce something that the” offer.
allow designed
• The rise in popularity and availability of “volume builder Timberlake Frame Package Build “Project Management” and “turnkey” products, the whole process so much easier for the customer.
make
• The fact that the “offer” from the main “Volume Services” We have smaller and smaller buildings on smaller and smaller parcels as more and more expensive (relatively speaking) and give a lower quality finished product years by year.
• The greater range of structural warranty and guarantee conditions. Add this to change from the original “Good reasons for self-build” as:
• A “personalized” finished product.
• Higher quality (in general). • Larger living space for less money. • The “Buy 2 get one free” theory (which still possible under the right circumstances). • Larger areas. • The VAT refund system. Taking into account all these points, the question has to be asked:
Why it has only an increase in completions of around 280 per year in the UK? – This is about a 5 (five) additional additions / county / year
If the self build industry as a whole was classified as a single transaction, with so many “USP’s (Unique Selling Points) and so on! a strong base of potential clients, all hungry to buy its products – and it showed only an increase in sales of around 1.5% per year, the “boss” would not only been dismissed, he probably would have been shot! (For his own good !!)
As an industry we have to admit that our progress is pretty pathetic, because all we have to work with.
Why the industry is in such a poor condition?
There are many reasons why our progress has been made so poor, and I am afraid we can not just blame the “lack of available land.”
Self Build industry is possibly one of the disparate and unconnected industries in the UK. There are literally tens of thousands of individual businesses / artisans / service providers / suppliers / consultants, etc. – they all tried as single entities “, and all their” little piece “of the market
you can say.” . Ok, but why is this so different from other types of industries – that is, like most industries work – some companies, all in competition with each other for a “certain” trade “.
Unfortunately for us the self build industry is not like other industries! For example: If I want a haircut, I know that when I go in every city in the country head, I will have a selection of appropriate equipment that can find the service plan. – In other words, everyone knows where you go for this service and how to get exactly what they need. – The fact that these companies are small and spread across the country does not really matter. -. It’s “shape” of the industry that the public can understand easily and to where they are in the UK (or even abroad) done
However, if I need a “project manager” for my self-build related project in the southeast of England, do although there are many project managers “out there”, I used to have a completely different set of factors:
a) research.
b) to understand. c) Act on. Once I’ve gone through this initial process, I’ll be using a different set of variables that I choose, I will be more involved in the research, and more decisions about issues that I very limited knowledge may have limited ability to be confronted and understood. Here is an example of what I mean, the “Project Manager” scenario as a basis: is
My project in the southeast of England. Someone told me that if I do not have time to plan and build it myself, I can take on a project to, look after it for me. – So I begin to ask my first questions “where” the possibilities of finding and the assumption of such person. My questions are along the lines of:
• What is a Project Manager?
• What do they do? • Did they do anything? Or just a few things? • Do you have the designs and drawings? • You get a building permit and building code it for me? • If you give me a “structural warranty on the finished house? • How much do they cost? • Where can I find one?
• Do they guarantee to do the work such as gardening?
• Did they like insurance garden?
do
• Why they are better for this type of project is a generator?
Using
• Have you got the “Stage certificates” I heard that the mortgage company?
• Did you buy the materials or I?
• Etc!
I’m on the internet and I find that I am with the results of a search on the term “Project Manager” presents not as easy as I had thought. – There are some “Self employed project manager. There are so-called “Build Package”, which is a project manager that comes in the cost, and something other than “Turnkey Project Management”, which sound very similar to “Build Package” but I suppose it must be in some way!
Some of the project manager, “Individual” Self employed people are saying, they can be the same as the big package companies build, but to do a lot cheaper. – How is this so? And they can really offer the same service as a big company? – How would I be able to compare the two
There are some who the “design” and the site management, but to say or do anything else? (Does that mean they get a building permit for me or not?) – Some say they will look after all the “cost” side of the project to keep me in touch to say most of what I spend, and some others, they are guaranteed a “finished” prize for the finished building. – Which of these involved the structural warranty
will choose me and buy all the materials and make them available on site for the development in the job?. – I like the idea, because I can see a very low cost. Some say they need to do is order control over all materials during the work in progress, making sure that everything they need is where it can make on time. – Some say they buy all the materials and that I just go and select all of them in their offices at the beginning of the work. – What are they now? Were they the ones who have the warranty? – Oh damn, I forgot. – I will start again
Unfortunately, this is only the beginning! – Say (for another example) that I decide that “floor” is something that interests me. – I need to get over it and get an idea of how much it will cost:
start by going to the Internet. – I find hundreds of sites, all with similar products. Some “supply only” supply and fix “a few. have some expensive glossy websites, some are just Plumbers Merchants. The big companies are a long way to go, but they must be good must not it? – Or they would say about this brilliant display, it can to cover my area? – If the distance is more costly to them? – Or because they are large, they are cheaper? How do I find out how much they are, without me even to buy their products? How does the warranty if you buy from a dealer? Do they have technicians? Can a normal fit underfloor heating installer? – Or is it a specialist job
I find the website for the “Self Build Exhibition” in Swindon and see that they have some companies it has a display of the floor – I probably have to go and see that before I make any decisions I’m
. – His brilliant, there are lots of displays, and just click on your laser “thing” at the bar-code and sent much information you get. – I have a lot about how underfloor heating works now learned and found companies that do it. – I will wait for the info and then I could decide for me what to do. (Sorry, can take the info up to 3 weeks to get sometimes).
I go back home and lead the planning of the project. – I’m starting to talk a plumber and he says that underfloor heating is a bad idea. – If you have a leak in the system of “hell” to repair, and that to heat it very slowly, so you have to leave it on most of the time, and then warms the house after you gone away for a weekend – a waste of energy and cost you money. He also says it is expensive to install. – I did not think
to hang on! – I have another plumbing, the floor and he says actually installed, it is best achieved since sliced bread! – He has a price, but it is very expensive. – He says that because it is more expensive, to top things to do than it is to do down! – Why would it be? – Maybe he “pulls the wool”
Hang back the post office has brought only the info from the show. I’m going to a few of these companies before I decide.
3 weeks later, they comply, the house came, I gave them the drawings and I now get a quote. – Its more expensive than one of the local guys, but they seemed very professional and explained everything to me. – They say that if I have a problem they have it immediately, but how they can be removed from 100 miles? – Is what I pay the surcharge for
I pay the extra to them in because I like their system to bring, or do I have to save the local guy and money, knowing that they provide at least live place? – Or do I take the advice of the first guy that the whole thing is a bad idea, and remain radiator
said I am confused!
Now, the two scenarios and multiply them by 50 to 100 times, to all the different areas of the project, you must cover before you begin research, and while you build. – Everything is very daunting and very time consuming, very confusing and can become very expensive, and you have not even started building yet
Many people simply give up half way through! “research phase”, because it is all too much for them.
Unfortunately, if they manage to get through this process, they are still far from start to the possibility. You will then need to move on:
“Finding Land”:
It seems
a growing misconception that the problem with the self build industry the “lack of availability of good quality land” is. – I’m sorry, but this is not the problem with the industry. – It has a huge problem with the process of “land supply” to own garden:
Currently, there are 6,700 listed building plots with build gates. This suggests that to me all over Britain there are probably about 30,000 construction sites are currently available. Many of these properties are for sale for some time.
These days we are able to build on most surfaces. Where poor soil, we use rafts or piles. Existing processes and services can be diverted to the rule or “built around”. Overhead lines can often be distracted or taken underground. The reason that there are thousands of properties for sale that have been sitting there just for months or years that they for what they are. are overpriced
The best “nice, flat, clear land in good locations sell quickly and often sell for significantly more than they are worth, and still leave a profit at the end of the project – is carried out. This is one of the advantages of self build process.
lower quality / complicated / difficult to sell property are often either not, or continue until a suitable buyer, ready, on any issues that come together with him . to be found – However, the problem is not really with the poor quality of the soil, but with the price of the poor quality of land and sometimes complicated and lengthy process to resolve the problems I will explain:
. Self Builder Each plan seeks to country to buy and build a new home. In the process they want to give something better than to buy from the “Volume house garden” and at lower costs.
However, as say, and I look at a site which is a drain on them, and some old foundations in a corner, has a “building line” that prevents me from building on part of it, and some limitation or other planning and a “ransom strip” on access. – In an area in which the adjoining land for £ 140,000 to be sold -. And the price of the property is £ 60,000
I will probably get out of the car. have a look, laugh, and again in the car.
However, if this same plot of land had an asking price of £ 15,000, I’d probably closer.
The problem with the Land was not the “inherent difficulties” It was the fact that someone (either the agent or the owner) has a much too high value put on it -.. If it attractive price so that there is still a healthy potential profit after all problems were solved, many more people would be interested in purchasing -.! Private garden not mind hard work, they just do not like paying for something that is not them value for money
currently have real estate broker in . usually very little idea how to land one value, you just give it your best guess. “- This is not their fault -. land on the market quite rare -. And when they are so in areas of different types of housing and “. a few months ago” qualities from the previous action, the agent has no magic wand with which they can be a picture of the finished house – you can therefore not give an accurate assessment of what it might be worth -. You can not judge how well and efficiently is the self-generator, so that they can not work, how much the house will cost to build or what could be the quality of the surface. – You have your finger in the air to keep, think and hope they are right (Another problem with the evaluation of methods is that often the person that this review will not be experienced in land values, or do not understand the construction process and will participate in principle, what the seller (also a newcomer to the market) they want to the value.
If the sites that are currently available that will have on the market for some time, had all reduced their prices to make more realistic to sell many of them.
18,000 of them sold tomorrow to double the number of “self-build completions” in the next year would be
The next part of the process that currently deter people away from “having a go “is:
Building permits:
There are probably many thousands (possibly” tens of thousands) of people in Britain, the country in addition to their properties or their property which, if it see a simple, straightforward manner, if they can get building permits, without risking their life savings, would probably “go for it.” Unfortunately there is currently no such system.
was because they “have a go” themselves (most people would not even try to think of it), they currently have listed, feel free to speak, hire and pay professional planning consultants. Sometimes the fees can be £ 1000 ” s, and most people do not have £ 1,000 ‘s are set around a venture which is only a relatively small chance of success to throw.
This way, the thousands of potential building land as undeveloped land. p> If there is a central organization, find someone to go, could something similar to the “no win / no fee” system that the “injury claims solicitors now operate successful, could change all this run. – The hub of this organization may (at first) in the Swindon Centre, and could then go as a new regional centers opened
.
“Each and every” position would bring, or send details of their possible action by the Centre.
The center would have a national database of “planning specialists, who all worked on a” pre-accepted system. “
The country would in detail, the various specialists in the coming environment will be offered. – Who takes over the contract first would go to the site and (based on a predetermined formula) do a quick assessment of the potential of the country in order to win is the probability of building permits to determine, and if so, what would be . the most appropriate type of development would also estimate the probability of land value once planning permission has been granted -. They would do this, either free or for a small fee (maybe £ 100 – £ 150).
You would return its findings in the middle, then on the basis of the results to the prospective seller:
• If there is no probability or permission given them back, the documents informed of a letter that “From We believe this country would
not suitable for development “
• If the potential for Permission granted they will make two offers.
1) The seller may pay all fees as accumulate a deposit paid in advance.
2) The seller can agree a “set-Commission, if planning permission is granted. (This could possibly be up to 20% of the land value). The advantages for the seller are:
• That the process is very simple and stress free for them
• You can do it with very little effort and little risk What to do if they
request
• Although, if for the “Commission” option they choose a higher fee may be paid by 20%. The fact is that 20% of £ 100,000 or £ 200,000 is far better than 100% of nothing
This could become an extremely profitable operation for the central body of the organization, and it could reduce the number of plots to always available “exponential” increase.
Once building permits have been acquired on land are the chances that they would then be through the center of their own placed “in house” land agent on the market, bringing in additional income, the “organizational body “. – This would then also include the potential buyers put in contact with the center, which could also offer them assistance with mortgage, etc.
Other areas of the planning process for the Builder’s “design” and the “building code”. -. At the moment, although it could be a significant improvement in the processes for these two operations are involved, they are not a major problem and need not be included in this report
There are however many more questions need answers, including: “We try to build it yourself or use subcontractors or a Builder / Build Package / or project manager” These are all areas where the quality of information and advice on leisure needs to be improved significantly, together with the standardization and simplification of the answers to many questions like “What about finances,” “What guarantee is best? “What is insurance?” How can we work the program “” When is the best time to start “How can we design a house?” “How much will it cost to build?” “How much profit can we expect?” etc.
It is actually amazing to consider all factors that start any self-build projects!
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